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1 1 . A You have just purchased a 1 0 - year zero coupon bond with a $ 1 , 0 0 0 face

11. A You have just purchased a 10-year zero coupon bond with a $1,000 face value at a price of $470.55. What will be the rate of return if you sell this bond one year later?
Assume that the yield of the bond remains unchanged for one year. Hint: get the YTM first and then apply Rt =(Pt+1- Pt)/Pt, where Pt+1 is the price next year
12. A You have just purchased a 10-year 6% coupon bond, payable annually, with a $1,000 face value at the price for the 7.5% YTM. What will be the rate of return if you hold this bond for one year receiving one-year coupon,
and then you sell it next year? Assume that the yield of the bond decreases to 7% for one year. Hint: get the purchase price (Pt) of the bond and then apply Rt =(Pt+1- Pt + AC)/Pt, where Pt+1 is the price next year.
Answer all questions in excel using excel formulas please
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